ENB:CC - Enbridge to raise Gray Oak Pipeline stake cut DCP stake in Phillips 66 deal

Enbridge ( NYSE: ENB ) said on Wednesday it completed a joint venture merger deal with Phillips 66 ( PSX ) resulting in a single JV holding both companies' indirect ownership interests in Gray Oak Pipeline and DCP Midstream ( DCP ).

Through the surviving JV, Enbridge ( ENB ) will increase its indirect economic interest in Gray Oak to 58.5% from 22.8% and assume operatorship from Phillips 66 ( PSX ), effective in Q2 2023.

In turn, Enbridge ( ENB ) will reduce its stake in DCP Midstream ( DCP ) to 13.2% from 28.3%, which it says will reduce its commodity price exposure and strengthening its low risk pipeline utility model.

Gray Oak Pipeline provides Permian Basin oil to Texas Gulf Coast and global export markets, and currently loads nearly 30% of North American oil exports.

Enbridge ( ENB ) expects the merger will be immediately accretive to its distributable cash flow per share and result in a $400M cash payment to the company from the merged entity .

For further details see: